All About Form 10A of the Income Tax Act: A complete guide
Introduction
Under the Income Tax Act, all trusts, societies, institutions, funds, and hospitals registered under Section 12A, Section 80G, or Section 12AA must apply for new registration under Section 10(23C). They must submit Form 10A in the prescribed format to the Principal Commissioner or a Commissioner authorized by the CBDT before the due date. The updated e-filing platform now facilitates the Form 10A submission process. This blog offers a detailed guide on how to file Form 10A.
What is Form 10A?
Trusts, societies, institutions, funds, and hospitals registered under Section 12A, Section 80G, or Section 12AA of the Income Tax Act use Form 10A to seek approval under Section 10(23C) of the Act. Applicants must file this form with the Principal Commissioner or a Commissioner authorized by the CBDT to obtain or renew registration for claiming exemptions under the specified sections. They must submit the application in the prescribed format through the Income Tax Department’s e-filing portal.
Why is Form 10A important?
- Form 10A is essential for seeking registration or renewal under Section 10(23C) of the Income Tax Act.
- It allows trusts, societies, and institutions to claim tax exemptions and deductions under Sections 12A, 80G, or 12AA.
- Filing Form 10A is mandatory for compliance with income tax regulations for charitable and religious organizations.
- It ensures that an organization remains eligible for tax benefits and continued recognition by the Income Tax Department.
- The form must be filed timely to avoid penalties or cancellation of the organization’s registration.
Who should file Form 10A?
Form 10A should be filed by the following entities:
- Trusts registered under Section 12A or 12AA of the Income Tax Act.
- Societies and institutions claiming tax exemptions under Sections 12A, 80G, or 12AA.
- Charitable or religious organizations seeking recognition under Section 10(23C).
- Funds, hospitals, and other similar entities that are registered under the relevant sections and wish to maintain or renew their registration for tax exemptions.
What documents are required to file Form 10A?
- Certificate of Registration: Proof of registration of the trust, society, institution, or fund under Section 12A, 80G, or 12AA.
- Pan Card: Permanent Account Number (PAN) of the trust or institution.
- Trust Deed or Memorandum of Association: Legal documents that outline the objectives and operations of the trust or organization.
- Financial Statements: Audited financial statements for the previous year such as a Balance Sheet, Profit and Loss Account.
- Tax Returns: Copy of the last filed Income Tax Return of the organization.
- List of Trustees/Directors: A list of the current trustees or directors managing the organization.
- Registration Certificate under Section 80G (if applicable): If the organization is registered under Section 80G, a copy of the certificate.
- Resolution for Filing Form 10A: A resolution passed by the managing body or trustees authorizing the filing of Form 10A.
- Other Supporting Documents: Any additional documents required based on the specific nature of the trust or organization.
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What is the step-by-step procedure to file Form 10A?
Here is the step-by-step procedure to file Form 10A on the new e-filing portal of the Income Tax Department:
- Visit https://www.incometax.gov.in
- Log in using the PAN of the trust/institution and the valid credentials.
- Go to the “e-File” menu.
- Select “Income Tax Forms” then “File Income Tax Forms”.
- In the search bar, type “Form 10A” and select the relevant option.
- Choose the applicable section under which you are seeking registration like Section 10(23C), 12A, or 80G.
- Confirm whether this is a fresh application or a re-registration.
- Enter details such as Name of the organization, PAN, Address, Nature of activities, Registration details under other laws like FCRA, Societies Act, etc.
- Upload scanned copies of Trust deed or MOA, Registration certificate, Audited financials, List of trustees/directors, Other applicable documents
- Review all details entered.
- Click on “Proceed to e-Verify”.
- Choose an e-verification method: Aadhaar OTP, Digital Signature Certificate (DSC), or EVC through bank account.
- Once successfully submitted and e-verified, an acknowledgment is generated.
- Save or download it for future reference.
What are the Benefits of filing Form 10A?
- Eligibility for Tax Exemption: Filing Form 10A ensures that your trust or institution qualifies for exemption under Sections 12A, 80G, or 10(23C) of the Income Tax Act. This reduces the organization’s tax liability and helps retain more funds for charitable or religious activities.
- Attracts Donors with 80G Benefit: Once approved, donors to your organization can claim tax deductions under Section 80G. This makes your institution more appealing to potential donors who are looking to contribute to recognized, tax-exempt organizations.
- Legal Recognition and Compliance: Filing Form 10A provides official recognition to the organization by the Income Tax Department. It shows that the institution is compliant with tax laws and operates with transparency and accountability.
- Access to Government Grants and CSR Funds: Registered and tax-exempt organizations are often eligible for government schemes, grants, and Corporate Social Responsibility (CSR) funding. Filing Form 10A opens up opportunities for such financial assistance.
- Mandatory for Renewal or Revalidation: As per recent amendments, even existing trusts and societies must revalidate their registration by filing Form 10A. Timely submission ensures continuity of benefits and avoids legal complications.
What are the consequences of not filing Form 10A?
Below are some consequences for not filing Form 10A:
- Loss of Tax Exemption Status: If the trust or institution fails to file Form 10A within the prescribed timeline, it may lose its registration under Sections 12A, 80G, or 10(23C), making its income fully taxable.
- Ineligibility for 80G Benefits to Donors: Without a valid registration, donors will not be able to claim tax deductions under Section 80G, which can discourage contributions and reduce overall funding.
- Disqualification from Government Grants and CSR Funding: Non-filing may lead to disqualification from receiving government schemes, aid, or CSR funds, as registration under the Income Tax Act is often a prerequisite.
- Legal and Compliance Issues: Failure to comply with the new regulations could result in notices, penalties, or scrutiny from the Income Tax Department, affecting the credibility and operations of the organization.
Conclusion
Filing Form 10A is very important for trusts, societies, and other institutions that want to keep getting tax benefits under Sections 12A, 80G, or 10(23C) of the Income Tax Act. It helps your organization stay legally recognized, attract more donations, and avoid any tax-related issues. Make sure to file it on time through the Income Tax e-filing portal to enjoy all these benefits without trouble.
Suggested Read :
Form 61A of the Income Tax Act
Penalty chart under Income Tax Act
Notice of Intimation under Income Tax Act
Annual Compliances for Trust in India
Appeal to Commissioner under Income Tax Act
FAQ
1. When should Form 10A be filed?
You must file Form 10A before the prescribed due date notified by the Income Tax Department, usually within three months from the start of the financial year or according to the latest amendment timeline.
2. Why is Form 10A required under the Income Tax Act?
It is required to obtain or revalidate registration under Sections 12A, 80G, or 10(23C), which enables organizations to claim tax exemptions and receive tax-deductible donations.
3. What happens if I miss the deadline to file Form 10A?
Missing the deadline may lead to cancellation of existing tax exemptions, making the organization’s income taxable and donors ineligible for 80G deductions.
4. How can I file Form 10A on the e-filing portal?
You can file Form 10A by logging in to the Income Tax e-filing portal, navigating to ‘Income Tax Forms,’ selecting Form 10A, filling in the required details, uploading documents, and completing e-verification.
5. Where can I find the latest instructions for Form 10A filing?
The latest updates and instructions for filing Form 10A are available on the official income tax E-filing Portal under the “Downloads” or “Forms” section.
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